Across The Border | Opinion: Major Chinese techs frustrated at CSRC’s stalling on whether it will allow them easier access to domestic market funding
In the first four months of 2017, some 170 listing applications were approved by the CSRC, an unprecedented pace for mainland stock markets
Liu Shiyu, the mainland’s top securities regulator, has yet to fully show its hand over what plans it has to allow larger companies, particularly online technology firms, easier access to market funding.
His China Securities Regulatory Commission (CSRC) has been fast-tracking initial public offering (IPO) approvals since the beginning of this year, in an apparent effort to quench high-growth firms’ thirst for fresh funding.
But large, established online giants such as Ant Financial Services and Zhong An Online Property and Casualty Insurance, are yet to be given the green light to float A-shares on domestic stock exchanges.
“Lofty valuations on the A-share market do appeal to technology firms,” said He Yong, a vice president with investment consultancy, New Third Board Club.
“The grim reality, however, is that many of them are unable to tap the domestic market and face difficulties too in attempting overseas listings at the same time.”
Beijing continues mulling over its plans on how to give home-grown internet stars a fast ticket to A-share IPOs, in an effort to deter them from listing on overseas markets – part of its ambitious “Internet Plus” strategy to modernise and rejuvenate the world’s second-largest economy.